Bitcoin News Today: Bitcoin Slips 7% After Surprising U.S. Inflation Data, Policy Uncertainty

Bitcoin’s rally hit a snag on Thursday, August 15, 2025, as U.S. inflation data and shifting policy signals from officials like Treasury Secretary Scott Bessent introduced uncertainty into the market. The cryptocurrency briefly flirted with an all-time high of $124,000 before retreating to close near $117,600, effectively filling the weekend gap in the CME futures chart. This movement followed unexpected Producer Price Index (PPI) data that came in hotter than expected, fueling concerns over potential delays in Federal Reserve easing cycles [1].

The gap-fill phenomenon occurs due to the mismatch between the 24/7 nature of bitcoin spot trading and the limited hours of CME futures. While such price corrections are not uncommon, the broader market context—particularly Bessent’s back-and-forth statements on a potential U.S. bitcoin reserve—added volatility to investor sentiment. His evolving comments appeared to confuse the market, which had previously interpreted the U.S. government’s openness to digital assets as a bullish signal [1].

Bitcoin’s rally in 2025 has been marked by repeated record highs, but each peak has also been followed by smaller pullbacks. The pullback after the $124,000 high has so far been a modest 7%, the smallest correction since January. Analysts are watching whether this trend of shrinking retracements indicates growing market resilience or just a temporary pause in the broader upward trend [1].

Looking ahead, Friday’s U.S. retail sales report is expected to show a 0.7% monthly increase, which would be the strongest reading since March. If the actual data exceeds forecasts, it could further weaken expectations for a September rate cut and weigh on bitcoin’s momentum. Beyond that, the week’s key event is the August 31 expiration of $12 billion in bitcoin options on Deribit, with a significant portion of open call options concentrated between $120,000 and $124,000. This suggests that many traders have positioned themselves for a continuation of the recent rally [1].

Derivatives activity remains strong, with open interest in bitcoin futures hitting $32.5 billion—close to its all-time high. Binance and Bybit lead in market share, holding $13.8 billion and $9.3 billion in open positions, respectively. The elevated open interest is supported by the BTC three-month annualized basis, which currently stands at 8%–9%, still below the fourth-quarter 2024 peak of 15%. This implies room for further growth if the spot price continues to rise [1].

Options market data shows a contango structure, with near-term implied volatility at around 20% and rising to 50% for mid-2026 maturities. This upward slope reflects increasing uncertainty about the longer-term trajectory of the market. The put-to-call ratio for the past 24 hours was balanced at 50:50, indicating no strong directional bias at the moment [1].

Liquidations over the past 24 hours amounted to $960 million, with 85% of those being long positions. Ethereum and Bitcoin were the most affected, with ETH leading in notional liquidations at $342 million. Binance data highlighted $117,091 as a critical level to watch in case of further downward pressure [1].

In the broader crypto market, ether traded back above $4,600, though it still faced selling pressure, with altcoins like TIA, CRV, and OP all losing over 7%. The standout performer was AERO, which rose 4.5% despite the overall downturn. AERO’s recent integration with Coinbase and a surge in trading volume on Aerodrome—a decentralized exchange with $612 million in total value locked—helped drive the gains [1].

The market also saw significant token unlocks and launches. Avalanche, Starknet, and Sei each saw a portion of their circulating supply unlocked on August 15, while Arbitrum and Fasttoken were set to follow on the 16th and 18th, respectively. On the token launch front, PublicAI and Pepecoin debuted on several major exchanges, adding to the week’s active market calendar [1].

The week’s macroeconomic calendar featured key data releases from Colombia and Peru, along with a high-profile meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska. These events could influence risk sentiment and, by extension, crypto prices. Meanwhile, the earnings calendar included results from Sharplink Gaming, BitFuFu, and Bitdeer Technologies Group [1].

Bitcoin’s dominance on the crypto market dipped below 60%, a historically significant level often associated with altcoin rallies. However, with no major catalysts currently in play, analysts suggest that a selective or minor altcoin season may be emerging rather than a full-scale shift. This could mean that while some altcoins may outperform, the broader market may remain volatile and risk-sensitive [1].

In summary, the crypto market faces a delicate balancing act between optimism about continued U.S. economic growth and concerns over inflation and policy uncertainty. Bitcoin’s rally shows signs of resilience, but the path forward depends heavily on upcoming macroeconomic data and central bank decisions. Investors are advised to stay cautious as the market navigates a complex and rapidly changing environment [1].

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Source: [1] Bitcoin Rally Stalls on U.S. Inflation, Policy Whiplash: Crypto Daybook Americas Your day-ahead look for Aug. 15, 2025 (https://www.coindesk.com/daybook-us/2025/08/15/bitcoin-rally-stalls-on-u-s-inflation-policy-whiplash-crypto-daybook-americas)